Frequently Asked Questions

What do you mean by “Serious Results?”

Aberdeen Advisors consistently outperforms the industry in all three key metrics in the M&A industry: sales price, close rates, and quality of the offer. For example, industry reports reveal that only 25% of firms listed wind up being sold. At Aberdeen, we dramatically outperform those statistics. We have sold 100% of our manufacturing clients and 83% of all clients. We refer to our industry-beating track record as “Serious Results.”

How much is my company worth?

The answer is, “it depends on the buyer.” Some buyers will only pay for the financial worth of your business, for example, asset valuation, earnings multiple and cash-flow analysis. But strategic buyers might see value in things like your location, customer profiles, expense structure or operational methods. So the key to obtaining the highest price for your business is far more dependent on finding the right buyer than the method of valuing the business. Aberdeen’s proprietary process leads the industry in finding buyers that will pay more than average because to them, you have more than average value. In fact, historically, 96% of our clients have received more than one offer.

How long will it take to sell my business?

After positioning and packaging, Aberdeen Advisors’ average time to sell a business is 9 to 12 months.

How are M&A Advisors different than Business Brokers?

Business brokers usually work with firms under $2MM in annual sales and the average sales price for the industry is $230,000. Their clients are sometimes referred to as “Main Street” businesses, like car washes, restaurants, and retail shops. Valuations for deals of this size are typically straightforward and the transactions have simple terms and conditions. The process normally involves a single buyer candidate, found locally. Brokers passively market their listings with broad advertising tactics, like ads, websites, and broadcast emails. In contrast, M&A advisors represent larger firms with $5MM to $100MM in annual revenue. These deals involve higher sophistication and complexity, such as multiple locations, custom terms and financing options. And, advisors market proactively on a very confidential basis to find multiple ideal prospects.

How are M&A Advisors different than Investment Bankers?

Investment Bankers provide advisory services to companies over $50MM. They require a substantial retainer, an ongoing monthly fee, and the overall costs are usually significantly higher due to overhead, legal and auditing requirements, and the size of the deal team.

Who is an Ideal Buyer?

Some buyers will only pay the financial worth of your business, for example asset valuation, earnings multiple and cash-flow analysis. But other buyers might see value in things like your location, customer profiles, expense structure or operational methods. Aberdeen’s proprietary process leads the industry in finding buyers that will pay more than average because to them, you have more than average value. In fact, historically, 96% of our clients have received more than one offer. Serious Results for Serious Sellers!

Is seller financing important to the sale of my business?

Industry surveys show that sellers requiring “all-cash” receive, on average, only 70 percent of their asking price. Compare that to firms sold with “terms,” who receive an average of 86 percent of their asking price. The key to higher average prices and more favorable offers always comes back to finding the right buyer, which is why the Aberdeen’s proprietary process is essential to superior results.